As a seasoned analyst who has navigated through numerous market turbulences, I find myself cautiously observing the recent developments involving Genesis Trading and Shiba Inu (SHIB). My personal experience has taught me that the crypto market is not for the faint-hearted, and this situation seems to be no exception.
Last week, Genesis Trading started distributing about $4 billion to its creditors as part of its restructuring process. The failed cryptocurrency lender has now finished its bankruptcy proceedings and is starting to pay out a combination of digital assets and cash.
This is when there is a potential threat emerging in the Shiba Inu (SHIB) market.
It’s been discovered that Genesis Trading owns approximately 21.9 billion SHIB coins, currently valued at around $294,640. This substantial stash by the recently bankrupt broker echoes last year’s scenario involving Voyager and Shiba Inu. Although the quantity is significantly less this time, the potential act of selling could still exert influence on the market dynamics.
More FUD incoming?
Genesis unveiled their plan at a point when the cryptocurrency market was already grappling with apprehension, ambiguity, and worry. If they were to sell a substantial amount of SHIB, it might exacerbate the prevailing market anxieties.
As someone who has gone through the difficult process of bankruptcy, I understand the importance of transparency and fairness when it comes to compensation for customers. In this case, the latest press release from the bankrupt lender offers a glimmer of hope. The fact that they do not intend to limit compensation based on asset values as of the filing date is a significant relief. While I know all too well that no amount of money can fully make up for the losses suffered during bankruptcy, an average 64% in-kind reimbursement in this initial distribution is certainly better than nothing. It’s important to remember that every little bit helps, and this gesture could go a long way in helping those affected by bankruptcy move forward with their lives.
The exact compensation varies by asset type. For example, creditors holding Bitcoin will get 51.3% of their claim, while those with Ethereum can expect to recover around 66%.
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2024-08-06 16:49